Question

Inflation can be caused by A. increases in the​ long-run aggregate supply curve or decreases in the aggregate demand curve. B. decreases in the​ long-run aggregate supply curve or decreases in the aggregate demand curve. C. decreases in the​ long-run aggregate supply curve or increases in the aggregate demand curve. D. increases in the​ long-run aggregate supply curve or increases in the aggregate demand curve.

Answer 1

Answer: d

Explanation: the increase in the aggregate demand leads to increase in the price level. Workers have a higher expending capacity.

Any increase in the demand production causes the prices

to increase.